Michigan voters to decide road funding tax hike

Dec 19, 2014

LANSING, Mich. (AP) - A proposed tax hike aimed at improving Michigan's transportation infrastructure and schools is heading to voters.

  The Michigan Legislature has put a sales tax increase on the May statewide ballot as part of a road funding plan.

  Boosting the 6 percent sales tax to 7 percent is the centerpiece of a plan to pump $1.3 billion more into transportation infrastructure and at least $300 million more into schools. The required two-thirds of members in the Republican-dominated Senate backed the constitutional amendment early Friday morning. The House approved it earlier Friday morning.

Credit Steve Carmody / Michigan Radio

Lawmakers passed a significant increase in the state's per-gallon gasoline tax that only will take effect if voters approve the sales tax hike along with the elimination of the sales tax that drivers pay at the pump.